Overview

• The US has declined to renew a sanctions waiver allowing Iraq to purchase electricity from Iran, effective March 8, 2025.
• The waiver's expiration aligns with President Trump's strategy to increase economic pressure on Iran to curb its nuclear program and regional activities.
• Iraq depends on Iranian imports for a significant portion of its energy, with officials warning of severe power shortages, especially during peak summer months.
• Iraqi authorities are exploring alternatives, including regional energy imports and boosting domestic production, but immediate solutions are limited.
• The US maintains that Iranian electricity accounts for only 4% of Iraq's consumption, though Iraqi officials estimate losing Iranian gas could cut over 30% of their power supply.